A search and seizure action under section 132 was conducted at premises of assessees on 18-3-2010.  During course of search, cash and fixed deposit receipts [FDRs] were seized.  Assessees had made an application for release/adjustment of cash and FDRs on 28-4-2010. Assessing Officer passed an assessment order under section 143(3) and levied interest under section 234B without making any adjustment of seized cash and FDRs against tax liability of assessees.Commissioner (Appeals) held that assessees were entitled to adjustment of seized Cash/FDRs against self-assessment tax liability from date on which period of 120 days was over in terms of section 132B and had upheld action of Assessing Officer in charging interest under section 234B. On appeal the Tribunal held that  application made by assessees was well within prescribed period, 30 days from end of month in which assets were seized.  Further, seized cash and FDRs were from disclosed source of income from respective assessees only. As per section 132B(1), Assessing Officer ought to have adjusted seized cash and FDRs against tax liability while framing regular assessment and, therefore, there was no question of levy of interest under section 234B up to 15-9-2010. Therefore, Commissioner (Appeals) was not justified in confirming interest charged under section 243B. The  Assessing Officer is  directed to rework computation in accordance with provisions of law. Tribunal also held that FDRs cannot be treated as money’ referred in section 132B(4)(b). Accordingly   mere seizure of FDRs, assessee had not suffered any pecuniary loss by way of loss of interest, no interest under section 132B(4) could be granted to assessee. (AY. 2010-11)